Hanoi Police Thwart Major Crypto Scam Targeting Hundreds of Victims

Hanoi City Police Thwart Major Cryptocurrency Scam

In a significant crackdown on cryptocurrency fraud, the Hanoi City Police Department in Vietnam intervened to prevent 300 potential victims from falling victim to a sophisticated scam orchestrated by a company known as Million Smiles. This fraudulent scheme had already siphoned off approximately 30 billion Vietnamese Dong (approximately $1.17 million) from around 100 businesses and 400 individuals.

Details of the Scam

Million Smiles promoted an in-house cryptocurrency called QFS, short for Quantum Financial System. The company utilized deceptive advertising strategies, falsely associating the cryptocurrency with ancestral treasures and spiritual claims to attract unsuspecting investors. They promised unrealistic returns on investment and claimed that owning QFS would unlock a financial ecosystem capable of providing funding without collateral or interest.

Police Intervention

The police initially discovered Million Smiles' plans to host a meeting with 300 customers with the aim of further promoting QFS. During these gatherings, fraudsters sought to persuade attendees to invest amounts ranging from 4 to 5 million dong (approximately $190) and up to 39 million dong (around $1,350) for businesses. Following the raid on the company's headquarters, law enforcement seized documents, computers, and various materials related to the scam.

Legal Findings

Investigations conducted by Vietnamese authorities revealed that the QFS token was entirely fictitious and had no legal standing under Vietnamese law. This incident underscores the seriousness of the cryptocurrency scams permeating the market.

A Broader Trend: Vietnam's War on Crypto Fraud

Vietnamese authorities have demonstrated a strong commitment to tackling crypto fraud. In a notable case in October, a provincial police force arrested five individuals connected to an elaborate network of crypto scams directed by offshore actors. On October 4, police from Nghe An, a province bordering Laos and the Gulf of Tonkin, dismantled a scam ring based in Laos, which was involved in fraudulent wire transfers.

Highlighted Scam Cases

One notorious scammer, posing as a woman, gained the trust of a man from Ho Chi Minh City, luring him into investing in a fraudulent application called Biconomynft. This fake application promised extraordinarily high returns. Over several months, the scammer managed to abscond with over 17.6 billion dong (approximately $700,000) from the unsuspecting victim.

Conclusion

This series of events highlights the proactive measures taken by Vietnamese authorities to combat crypto-related fraud and protect the financial interests of citizens against such fraudulent schemes. The police actions not only prevented significant financial losses but also signaled a strong deterrent message to prospective fraudsters in the region.